Park Ridge alderman give preliminary approval to sewer, water hike

Jon DavisSpecial to the Tribune

Park Ridge’s proposed new, higher water and sewer rates are a step closer to showing up on residents’ bills.

Aldermen Monday overwhelmingly approved the new rate structure on its first reading. They are scheduled to take their final vote on July 16. If given final approval, the new rates will appear on water/sewer bills beginning Aug. 31.

Unveiled last week, city officials said the new rate structure is based on the actual cost to deliver water and sewer service, and designed to match the city’s increasing costs over the next five years.

Among the factors prompting the rate hikes are the increasing debt for sewer/flood mitigation construction, the need to find a dedicated revenue source for ongoing infrastructure repair, and Chicago’s water service rate hikes.

The new rate structure more equitably distributes both systems’ fixed and variable costs among all customers, officials said. The new structure includes:

A fixed charge according to meter size for water and a fixed sewer charge of $2.98 per bill.

Water rates of $2.51 per 1,000 gallons to cover the cost of buying water from Chicago.

A charge of $2.85 per 1,000 gallons for Park Ridge-related variable water system costs.

A charge of $1.27 per 1,000 gallons for sewer system-related variable charges.

The new water rate structure includes a base rate of $16.53 for users with water meters that are 1.5 inches or smaller, $26.45 for 2-inch meters, $74 for 3-inch meters, $165 for 4-inch meters or $331 for 6-inch meters.

According to the city’s rate study, the average residential water customer with a 5/8-inch water meter, who uses 4,000 gallons or less every two months, can expect to see his or her monthly water charge rise from the current $35 to $46 after July, and then incrementally to $58 by 2017-18.

Newly seated Ald. Marc Mazzuca was the lone no vote, saying he has “some concerns” the new rate structure will disproportionately affect residents with 5/8-inch meters. He also questioned the new rate structure’s ability to address long-term capital needs and the planned automatic meter-reading system’s ability to generate as much revenue as city officials expect.

Finance Director Alison Stutts last week said the water rate study by Baxter & Woodman, Inc., is more of a guide than a precise prescription. Outside factors could make rates higher or lower than anticipated, she said, adding the city will review both the rates and those factors annually. The proposed new rates do not include the city’s utility tax.

Stutts said the new rates will appear on Aug. 31 bills rather than July 31 bills because the city will need more time to reprogram the billing software.

The new structure covers the proposed $15 million in new bonds for the second phase of sewer/flood mitigation work, and a $3.5 million in new bonds to install water meters that can be read remotely by radio, rather than relying on customers to read their own meters and accurately report the results.

Also Monday, aldermen unanimously agreed to cancel the June 25 Committee of the Whole and July 2 City Council meetings. The council routinely cancels some June and July meetings every year, as official business slows during the summer. Aldermen next meet July 8.